- December 4, 2025
A potential switch for a new broker for the city's employee benefit plans will not be happening anytime soon.
On Wednesday, Sept. 3, the Ormond Beach City Commission voted 3-0 to reject bids from both Brown and Brown, its existing broker, and Foundation Risk Partners. Staff will negotiate an extension to Brown and Brown's current contract, and the topic will be discussed at a future commission workshop before the contract is rebid.
Commissioners Travis Sargent and Lori Tolland abstained from the vote; Sargent works for Foundation Risk Partners and Tolland's son works for the same company.
"We had a discussion at the last meeting in terms of, if you want additional information, it has to be within the footprint of the RFP (Request for Proposals) that was issued, because otherwise it creates an unfair advantage to one party over the other party," City Attorney Randy Hayes said.
The vote to select a broker was previously tabled at the commission meeting on Aug. 5, following a workshop where commissioners questioned the fee disparity between the two companies. Brown and Brown proposed an annual fee of $50,000. Foundation Risk Partners proposed an annual fee of $99,102.
But some commissioners wondered if Foundation Risk Partners could offer more cost-savings in the long run.
Brown and Brown's current five-year agreement with the city is set to expire by the end of September. That agreement was based on a 3% commission, rather than a flat broker's fee.
Hayes said part of the workshop discussion revolved around the commission's desire to look at alternative approaches, and if that was still what they wanted to do, then they should reject the bids.
"Alternatives are great, but we need to have an even playing field and your staff needs to have an opportunity to evaluate actually what's being proposed," Hayes said.
Assistant City Manager Claire Whitley added that the city also behind in renewing and getting insurance coverage for employees.
"That time clock should have started a little bit ago," she said.
Whitley said staff would need at least a year to prepare to go out for bid again.
"I say that because the negotiation and implementing that plan for the employees is a long process, and to ask a broker to do that and then put it up for RFP right after that work does not fall on our timeline or our employee timeline in terms of changing brokers," she said.
Commissioner Kristin Deaton said she wanted to give staff time to review this. She added she'd like the city to see if the current contract could be renegotiated at a lower commission fee in the meantime.
"I was heavily scrutinized online for taking the time to be educated and not just immediately picking the quicker bid, but not picking the quicker bid could save us $200,000 — I don't know," Deaton said.
Commissioner Harold Briley said that, for future reference, holding two workshops on the issue may be beneficial.
Deaton agreed, saying she'd like information that was provided to previous commissions regarding the overall employee benefits as well.
